Taking Out $12K Leaves “Clear Skies” For Bitcoin To Set New 2020 High

Bitcoin price is currently down nearly $400 from yesterday’s highs in a flash, after coming close once again to the $12,000 resistance level. According to a crypto analyst referencing on-chain analytics, once $12,000 is broken through cleanly by bulls, there’s “clear skies” above that until $16,500 – which they claim is just a minor “speed bump.”

Technical analysis also demonstrates just how critical $12,000 has been to Bitcoin and its ongoing bear market, and why it may remain the key to fully unlocking the power of the next bull run.

On-Chain Volume Analysis Shows “Clear Skies” For Bitcoin Above $12,000

At this point, $10,000 feels like an afterthought, and now the leading cryptocurrency by market cap faces $12,000 as the de facto resistance level to break.

$12,400 is the current 2020 high, but after Bitcoin has now spent its longest stretch above $10,000 in its history, and fundamental health improves by the day, it is only a matter of time until $12,000 is taken out as well.

Bitcoin On-Chain Analysis Shows $12,000 Significance | Source: Byzantine General Via Twitter

When that happens, according to a top crypto analyst sharing an on-chain volume profile analysis, it is “clear skies” for Bitcoin. Aside from a small “speed bump” at $16,500, new all-time highs and a return to price discovery could be next.

RELATED READING | HOLD OR HOARD: DATA SHOWS STAGGERING AMOUNT OF BITCOIN SUPPLY HASN’T MOVED IN SEVERAL YEARS

But it all depends on this key level, which is clearly the most dominant level left on the on-chain volume analysis profile shared by the analyst. The current cluster is what is keeping Bitcoin trading sideways, and the only other comparable volume clusters lie below at $3,200 or lower.

Technicals Highlight How Critical $12K Is To The Cryptocurrency’s Bull Breakout

$12,000 is also the technical level to beat, matching the on-chain volume profile analysis above. Bitcoin only traded two weeks of 2018 above $12,000, then has never closed a weekly candle above that level, not even in 2020.

BTCUSD Weekly $12,000 Resistance Level Technical Analysis | Source: TradingView

When that does happen, the next logical target is a retest of the 2019 high at $13,800, and beyond that, is the “speed bump” on-chain analysis shows that could cause a short-lived pause in any uptrend.

RELATED READING | THIS UNUSUAL BITCOIN ADOPTION METRIC SETS NEW ATH

$12,000 is the line separating Bitcoin from a bear or bull market. Beyond that level, however, as the trader says, its clear skies for the crypto asset, and likely new all-time highs set each new passing month until the next peak is in.

Featured image from Deposit Photos, Charts from TradingView